Friday, November 18, 2011

Home sales in the Portland Area grew almost 14% in October from last year. This has been a trend for the summer and is combined with a substantial decrease in the number of homes placed up for sale. Read my summary below to see how this may benefit you.

The number of Portland Area homes Sold in October increased 14% as compared to 2010. This combined with a substantial drop in the inventory of homes For Sale is great news for Portland Home Values. There are currently 10,012 homes up for Sale – a substantial decrease from a peak of over 18,200 homes in the summer of 2008. Back then, it was a difficult time for home sellers to compete with 18,000 homes for sale, and home buyers were overwhelmed and uncertain with pricing about a third higher than it is today. Portland Home Values will likely increase if this inventory reduces further in 2011-2012.

The average cost of a home in Portland is currently $263,700 – up almost 6% from the start of the year. Homes that are located well and priced to attract a buyer are selling quickly with multiple offers.

Housing Investment for the Long Haul

by Lawrence Yun, Chief Economist National Realtors Association

Home prices took a rough ride in the past decade. The past 10 years were an anomaly fueled by easy credit availability. Those days are over – and for the better. Most Americans believe in hard work (and not easy credit) before being able to enjoy the fruits of their labor.

The chart below shows the long historical trend in median prices of a single-family home in the U.S. A typical buyer purchased a $23,000 home back in 1970. The monthly mortgage payment on that home, assuming a 5 percent down payment, would have been $153 per month for 30 years. So a homeowner who did not do a cash-out refinance would have paid off their mortgage by the year 2000. So imagine no further rent or mortgage payments. Currently in America there about 25 million homeowners who own their homes free-and-clear.

On top of no mortgage payments, the median price of a home in 2000 was $143,000. This is something a person could bequeath to their loved ones when the time arrives or even use for charity donations: the fruits of one’s lifetime labor being put to a good use.

Home prices took a rough ride in the past decade, it’s true. But let’s not forget about the very basic and long-term benefits of homeownership for those who are willing to stay well within their financial capacity.

Wednesday, October 5, 2011

Home sales in the Portland Metro Area grew almost 31% in August from last year. This has been a trend for the summer and is combined with a decrease in the number of homes placed up for sale. Read my summary below to see how this may benefit you.

Home sales increased 31% in August as compared to 2010. This a great news for Portland Home Values. The number of homes sold in Portland has steadily increased over the past 3 years indicating the market is stabilizing and Portland Home Values are beginning to rise. The average cost of a home in Portland is currently $271,800 – up almost 11% from 6 months ago.

Homes that are priced to attract a buyer are selling quickly with multiple offers.

National Home Prices continue to show seasonal strength according to the S&P/Case-Shiller Home Price Indices. U.S. home prices have shown a four consecutive months of increases. “With July’s data we are seeing not only anticipated monthly increases, but some fairly broad improvement in the annual rates of change in home prices,” says David M. Blitzer, Chairman of the Index Committee at S&P Indices. “This is still a seasonal period of stronger demand for houses, so monthly price increases are expected. The exceptions were Las Vegas and Phoenix where prices fell, while Denver was flat. The better news is that a majority cities saw their annual rates of change improve in July.

Homes Are Affordable. First-time buyers can find quality homes priced around $200,000. Higher-end homes are affordable to middle-income wage earners. And, it’s a great time to buy investment properties.

Mortgage Interest Rates are BELOW 4%!

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Home sales increased 21% in July as compared to 2010. This a great news for Portland Home Values. The inventory of homes for sale has also hit the lowest level since July 2007 further indicating the market is stabilizing. Portland Home Values should increase if this inventory reduces further in 2011.

The average sales price of a home in Portland is currently $275,100 – an increase of 3% from last month. Homes that are priced to attract a buyer are selling quickly. We currently have homes in inner-SE and NE neighborhoods selling with multiple offers.

Just four years ago the average price of a Portland home had peaked over $350,000! Much of that gain has been reduced, though you can see in the graph below the average sale price has spiked this year between January and July by just over 12%.

Homes Are Affordable Again. First-time buyers can find quality homes priced around $200,000. Higher-end homes are affordable to middle-income wage earners. And, it is a great time to buy investment properties…as there as some deeply discounted prices!

Mortgage Interest Rates are BELOW 5%.

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Do you know someone looking to buy or sell a home? Please have them call me.

Pending home sales increased 12% in June from the month prior, and almost 24% compared to 2010. This a great news for Portland Home Values. The inventory of homes for sale also hit the lowest level since July 2007 further indicating the market is stabilizing. There are currently 11,817 homes on the market in the Portland metro area – a substantial decrease from a peak of over 18,200 homes in the summer of 2008. Portland Home Values will likely increase if this inventory reduces further in 2011.

The average sales price of a home in Portland is currently $260,000 – a decrease of 7.8% from last year (humbug). However, the average sales price increased by almost 2% in June with the spike in buying activity and stabilizing supply of homes for sale. Homes that are priced to attract a buyer are selling quickly. We currently have inner-SE and NE neighborhoods selling quickly with multiple offers as it seems everyone wants to live there, pricing is affordable again, and the inventory of homes for sale has dropped considerably.

Just four years ago the average price of a Portland home had peaked over $350,000! Homes Are Affordable Again. First-time buyers can find quality homes priced around $200,000. Higher-end homes are affordable to middle-income wage earners. And, it is a great time to buy investment properties!

There are currently 11,825 homes “For Sale” in the Portland Metro Area – a very slight increase from last month. This is great news as the number of homes For Sale typically rises substantially in May. The number of homes For Sale is stabilizing and has decreased from a peak of over 18,200 homes in the summer of 2008 (imagine trying to sell your house for a peak price with 18,200 others to compete with…). Portland Home Values will likely increase if this inventory decreases further in 2011.We currently have inner-SE and NE neighborhoods selling quickly with multiple offers as it seems everyone wants to live there, pricing is affordable again, and the inventory of homes for sale has dropped considerably.

Nationally, home prices rose last year by 1.3 percent according to the Case-Shiller index. This modest gain is a reprieve considering prices fell about 30 percent from 2006 to 2009. Last year’s demand arose from a home buyer tax credit, and economists are hoping this year’s demand will come from improving job market conditions. The latest jobs figures show that a seasonally adjusted 783,000 jobs were created in the first five months of this year. This is positive news.

The average sales price of a home in Portland is currently $258,300. Just four years ago the average price had peaked over $350,000! Homes Are Affordable Again. First-time buyers can find quality homes priced below $200,000. High-end homes and condos are affordable to middle-income wage earners. And, it is a great time to buy investment properties!

About Me

A local resident for over 40 years, Darin is at home in Portland. He has worked full-time as a Broker since 2005 and is dedicated to being a resource to his clients. He is a graduate from Portland State University with a Business Degree in Finance, so numbers come natural to him. If you'd like to know what your house is worth - Call him! He began his professional career as a financial analyst for the City of Portland and worked progressively with Portland’s water utility for 17 years.

After a long career with the City, Darin’s restless nature led him to a successful 12 year career in real estate. He bought his first home in 1993 in SE Portland at 43rd & Clinton – just a short walk from the Portland Digs’ office.

Undoubtedly, you’ll feel his love of the business and experience comforting. Darin works hard for his clients and is available to help first-time home buyers, investors, and long-time homeowners looking to move.

When he’s not working, Darin spends time on a motorcycle, or on the Columbia River windsurfing.